Japanese government and BOJ debate

The Japanese government’s top economic council met on Monday to focus on whether recent inflation and wage gains suggest Japan is moving closer to a sustained escape from deflation. “While there have been some positive signs in recent data, we must ensure that they are stable and sustainable so that Japan does not slip back into deflation,” the Japanese cabinet said at the meeting. A round of discussions focused on the roles both sides should play in delivering sustained wage increases that would help reduce the risk of Japan returning to deflation.